QE3’s effect to Malaysia Properties

What is QE3  means? A simple way is United State government print a lot more money to stimulate the weak economic.

Is it nothing related to us as a Malaysian? NO.

First, we see our currency rate has increased, from about 3.17 ==> 3.07.

To protect our export edge, our government will tend to do the similar move to keep our currency lower.

When Malaysia government create more money into the market. What can be expected soon?

1) Stock market increase :
When you hold a lot of money and market demand is slow. Usually you won’t invest more on facility or equipment. The money tend to go for stock market to gain higher return.

2) Property price have strong support:
The alternative choice besides stock market is to invest in Property. Especially Malaysia property price level is still cheaper compare to our neighbour country like Singapore, Thailand, Indonesia, Vietnam ,…

3) Prime area property price increase:
Hot money from oversea will push up the property price of Prime area. Same reason as #2. Our property price is relatively cheap.

4) Inflation:
Money become smaller.

Now the house price is high, should we buy or wait? I think for own use purpose low and middle range houses, should buy now.